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If all of the rumors are true, Amazon has a 7-inch “media tablet” that runs a forked version of Android and will connect to all of Amazon’s services, including its Appstore, Movies, TV, Music and of course eBooks. It won’t be true multi-touch but the rumored price is half of the iPad’s (just like the screen) at $250. Who is making this for Amazon? Foxconn of course.
Yes, it sounds just like a Nook (which is getting an interesting update soon) with a better backend store.
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Im personally hoping that they'll launch their ebook rental system just to see how it plays out. That doesn't mean im not looking forward to their tablet but really, even if it's half the price of the iPad can it really compete.